Most of you have already set your business goals, like, how much money should you earn from your work. Its quite easy, and mandatory for any one in the business. But, the goal setting process not completed by keeping financial goals. You must understand, the financial goals are only the output of your operation and by measuring the same will not lead you anywhere. I would like to introduce two kind of measures to a small business. You must have lead measures/ indicators in place of lag measures.
Lag measures are something we could measure at the end of the process. for example, how many units are sold in a month? how much profit is earned in a year? How many viewers are visiting your blog every day?…These measures if you look at deeply, has no control by us. What we can actually control is the product quality, timely delivery, user satisfaction, etc. but not the output. Measuring the output will only tell you where are you in the race, but do not lead to success. It will only tell you whether you have achieved or not.
Lead mesures are for your inputs. it communicates whether you are in right path towards success. It gives a roadmap status, running commentary, an alarm and to be specific, simply measures the heart beat of your business. By measuring the no. of people follows safety procedures (lead measures) we can minimize the no. of accidents (lag measures). By measuring the no. of improvements made by employees towards cost reduction (lead measures), we can control the cost of product (lag measures)
it is up to you to decide what kind of lead measures required for your business. But measuring the performance must add value to the business.